Gold sheds Rs 90 to Rs 25,600 on muted demand; silver ends flat

Gold prices eased by Rs 90 to Rs 25,600 per ten grams at the bullion market on Wednesday, extending its slide for the third straight day.

Traders said tepid demand from jewellers and retailers following end of wedding season mainly kept pressure on gold prices. Photo: Reuters

Gold prices eased by Rs 90 to Rs 25,600 per ten grams at the bullion market on Wednesday, extending its slide for the third straight day, owing to slackened demand from jewellers and retailers even as metal strengthened overseas.

Silver, however, held steady at Rs 33,500 per kg in scattered deals.

Traders said tepid demand from jewellers and retailers following end of wedding season mainly kept pressure on gold prices.

They said, however, a firm trend overseas as traders kept on the sidelines ahead of a highly anticipated Federal Reserve meeting, that is likely to result in the first US interest rate increase in almost a decade, capped the fall.

Globally, gold gained 0.5 per cent to $1,066.35 an ounce in Singapore, while it ended 0.08 per cent higher at 1,060.90 an ounce in New York in yesterday's trade.

In the national capital, gold of 99.9 and 99.5 per cent purity fell further by Rs 90 each to Rs 25,600 and Rs 25,450 per ten grams, respectively.

The precious metals had lost Rs 310 in the precious two days.

Sovereign, however, remained steady at Rs 22,200 per piece of eight grams.

On the other hand, silver ready held steady at Rs 33,500 per kg, while weekly-based delivery edged up by Rs 60 to Rs 33,575 per kg.

Meanwhile, silver coins was trading at previous level of Rs 47,000 for buying and Rs 48,000 for selling of 100 pieces.